Exit and Growth Strategies for Middle Market Businesses

The report below gives a good overview of the first quarter M&A activity in the Print and Packaging Industry Sector. M&A activity for North American based target companies in the Packaging and Printing sector for Q4 2017 included 26 closed deals, according to data published by industry data tracker FactSet.
One of the largest transactions of the quarter closed in October when Genstar Capital, LLC acquired Tekni Plex, Inc., a portfolio company of American Securities, LLC, for a reported value approximately US$1.5 billion. Founded in 1988, Genstar Capital is a private equity firm located in San Francisco, California. Tekni-Plex manufactures and sells packaging, packaging products and materials and tubing products primarily for the food and beverage, healthcare, specialty, lawn and garden and consumer markets.

According to a report from Smithers Pira, an industry research group, the digitally printed labels and packaging market was worth $13.4 billion in 2017. By 2022, the rapidly expanding digital (inkjet and toner) packaging market will grow by almost 13% annually to exceed $22 billion.

Industry Indicators

US corporate profits, an indicator of corporate demand for converted paper products, rose 5.4% in the third quarter of 2017 compared to the same period in 2016.

US nondurable goods manufacturers’ shipments of paper products, an indicator of converted paper product demand, rose 2.9% year-to-date in November 2017 compared to the same period in 2016.

Total US retail sales, a potential measure of demand for converted paper products, increased 4.2% in the first twelve months of 2017 compared to the same period in 2016.

The Middle Market Pulse, an executive brief, provides M&A market insight for c-level management, shareholders and their professional advisors. To receive this free monthly report by email, please complete the following form: